On Tue, 30 Sep 2008 15:46:01 -0700, "William Chops Westfield" said: > It annoys me that it appears so insensible, especially f it's really > mostly based on bad real estate loans. I mean, suppose I am tricked > and/or trick my way into a bad loan that adjusts in a way that I can > no longer make payments. So the lender forecloses. But housing > values are down, and the lender can't re-sell the property except at a > (significant) loss. It seems that that loss is likely to be greater > than the lend would have had if they'd renegotiated the loan with the > original holder, so that overall EVERYONE would have been better off > not foreclosing in the fist place. But if it's renegotiated then the lender has "lost" money and the borrower has "gained" money and will owe tax on the "profit" he just made. I think the current scheme of things is to allow the dollar to devalue enough, quickly, that houses can be sold at the same or higher price so nobody "loses". Great idea, huh? Cheerful regards, Bob -- http://www.fastmail.fm - IMAP accessible web-mail -- http://www.piclist.com PIC/SX FAQ & list archive View/change your membership options at http://mailman.mit.edu/mailman/listinfo/piclist